Encl. (1) to COMDTINST 4610.6
(2) The examples cited above cannot be applied if the improper lading, loading, or similar
deficiency was known to the carrier or could have been apparent upon ordinary
observation. If such deficiency were apparent, the carrier had a duty to reject the
shipment. If the carrier accepted the deficient shipment, it may not be relieved of
liability.
3.
Government Liability and Responsibility.
a.
Acceptance or Rejection of Goods. Regulatory requirements for the acceptance or
rejection of damaged freight are contained in Title 41 of the Code of Federal Regulations,
Chapter 101, subpart 101-40-704-1(c). Coast Guard policy and requirements are
contained in COMDTINST M4610.5, Transportation of Freight. Goods must not be
rejected to the carrier merely because the receiver believes there is damage to the property.
Property may be rejected to the carrier and claim made for its full value ONLY when it
has been damaged to the extent that it has no salvage value or it is not economically
repairable; that is, the cost of repairs exceed the appraised value of the repaired item.
b.
Receipt of Shipment from Carrier. Regulatory requirements for the receipt of
shipments from carriers are contained in Title 41 of the Code of Federal Regulations,
Chapter 101, subpart 101-40.7, Reporting and Adjusting Discrepancies in Government
Shipments. Coast Guard policy and requirements are contained in COMDTINST
M4610.5, Transportation of Freight.
c.
Investigation of Discrepancies. The primary purpose of discrepancy investigation is to
determine responsibility for loss or damage and establish the full actual loss to the
government. The TO/TM conducts an impartial investigation free of predetermined
opinions as to responsibility for loss or damage. The investigation must establish such
factors as proximate cause of damage, measure of loss or damage, market value (or
Federal Supply Catalog or DLA Consolidated Management Data List value), preshipment
reparable value, salvage allowance, depreciation, inspection by the carrier or government,
actual repair cost, and disposition of damaged property.
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